KSHB 41 reporter Rachel Henderson covers neighborhoods in Wyandotte and Leavenworth counties. Share your story idea with Rachel.
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Santa Fe Grocers LLC submitted a letter of intent to open a new grocery store at 501 Minnesota Avenue in Kansas City, Kansas, which would provide a solution to a months-long food desert following the closure of the MERC Co+op.
The local operator plans to rebrand the former store as a United Market.
The Unified Government of Wyandotte County’s economic development and finance committee is set to review the letter of intent on Monday at 5 p.m.
The County Administrator's Office wants the the committee to quickly move the item to the April 2 Board of County Commissioners meeting for approval.
According to the letter of intent, the initial three-year agreement with the store's owners would run through April 30, 2029.
The Unified Government would waive the $5,000 monthly occupancy fee through April 30, 2027.
Santa Fe Grocers would have an exclusive option to purchase the building starting in the third year of the agreement.
If the company chooses to buy the property, any occupancy fees paid would be credited dollar-for-dollar toward the purchase price.
As a condition of the sale, the operator would have to sign a restrictive covenant agreeing to continuously operate a full-service grocery store at the location for 10 years.
The proposed agreement also outlines community standards for the new United Market.
The store would be required to operate daily from at least 8 a.m. to 8 p.m., accept EBT/SNAP benefits, implement affordability pricing strategies and make “best efforts” to hire residents from surrounding neighborhoods.
The County Administrator's Office is asking the commission to approve $150,000 for tenant improvements to help with demolition, construction, and signage.
County Administrator David Johnston said the funds would come from a budgeted economic development fund.
Finding a replacement grocery store was “urgent” for the Unified Government, according to Johnston.
Johnston said the facility, which cost about $7 million to $8 million to build, used federal new market tax credits to help pay for the store. Those tax credits require the space to remain a grocery store.
"The penalties can be severe in that our taxpayers would have to pay for that,” Johnston said. “And we didn’t want that.”
The new agreement will also require on-site security and cameras.
Johnston noted that inadequate security was a weakness of the original MERC agreement.
"I think they’re going to step up the security presence than what was in place with the MERC,” Johnston said. “So that’s going to be a commitment we’re going to hold them to.”
Santa Fe Grocers already operates two locations in Wyandotte County, including an El Mercado Fresco at 74th and State Avenue, as well as a Frutopia ice cream shop.
The company also took over operations at the former Sun Fresh at East 31st Street and Prospect Avenue in Kansas City, Missouri.
KSHB 41 News Kansas City reporter Alyssa Jackson has covered extensively the fate of that store.
"They wouldn’t have approached us if they thought this was going to be a failure for them, Santa Fe,” Johnston said. “They expect to get a return on their profit, and that’s what we hope.”
The MERC closed in December, leaving downtown residents without a full-service grocery store.
Johnston said the Unified Government faced criticism for the closure, but the previous operator asked to close due to the store's performance.
"When the MERC decided it was closing, we got criticism for allowing it to close,” Johnston said. “Well, it’s the market that decides what it was. So you look at their product, it’s not what the market wanted.”
Alfred Judie, a resident who relies on public transportation, said the closure has been difficult for the neighborhood, especially for elderly residents who now have to catch a bus to shop in western Kansas City, Kansas.
Judie is the president of the resident council at Glanville Towers on Nebraska Avenue, just three minutes from the MERC.
He’s also a lifelong KCK resident and has seen the city change drastically over time.
Judie says a lot of the seniors living in his building don't feel comfortable leaving their complex because of the neighborhood's crime problems.
He says he witnessed vandalism at and around the MERC.
He and Johnston spoke to the lack of residential rooftops and empty lots in the northeast area deterring larger investors.
"It’s just a desert, but we still need the food, because there’s still people down here that want to live down here," Judie said.
Judie said he hopes the new store will offer a variety of foods and give the community a chance to thrive.
"Why take all of our money out in western Kansas when we could leave it here and use the resources here in our part here to build up down here?" Judie said. "It’s worth a shot. It’s worth a shot. Give us a shot.”
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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